'Right to Repair' policy set to come in effect
Technology use has been on the rise for many decades now and has been reliant on constant replacement through upgrades or devices failing. This has lead the sustainability sector to push for a circular economy and repairability of technology holds a large window of opportunity due to products containing critical raw materials (CRMs). CRMs, such as Cobalt or Lithium, have high economic importance and high risk of supply being disrupted. Therefore, reutilisation of these holds a key place for the future so economic growth can prosper.
The new policy on common rules on repair of goods or more commonly known as ‘Right to Repair’ (R2R) has been accepted on the 30th May 2024 by the European Parliament and Council. A similar policy of R2R was put through by the UK government in 2021 and covered the same areas for repair of technology. The objective of these new rules is to widen the access and affordability of repairs. In 2020 as part of a project on value retention processes with Innovate UK, Oakdene Hollins found the domestic appliances and ICT repair market to be £6398 million in the UK. New rules should allow this market to grow. Not only will the policy alter the repair sector itself but manufacturers will need to incorporate a repairability aspect to their designs. This ties into Ecodesign which looks at reducing the environmental impact of products through innovative design. Here at Oakdene Hollins we have been working in this sector for 30 years so have a wealth of expertise.
What are the R2R rules for Europe?
‘Right to Repair’ is an initiative which will ‘provide consumers with key information on repair services’ and prices should be such that ‘consumers are not intentionally deterred from benefitting from the manufacturers’ obligation to repair’. Manufacturers will be made to offer accessible spare parts and provide repair services past the warranty period. This policy applies to dishwashers, washing machines, refrigerators, vacuum cleaners and smartphones. Whilst there is potential to develop this further, we recognise this as a good first step towards a circular economy as technology will have longer lifespans which reduces E-waste in the long run. E-waste has been steadily increasing at 3-5% each year which is triple the increase of municipal waste. As mentioned before this waste contains valuable CRMs which need to be reused and therefore, a circular economy is essential in retaining these.
What impacts will this have for consumers and businesses?
1) Consumer impact: The major barriers to consumers repairing products , as found through surveys, are the cost of repair, the possibility of repair, lack of spare parts and unawareness. R2R works on improving the first three of these obstacles and hopefully with a larger repair market opening, the awareness will improve.
The ability to repair things allows consumers to save money and be part of the circular economy. However, according to surveys, less than 30% of customers buy sustainable products and the majority of people only look for repairs on large and expensive products. This is mainly due to the cost and their comfort in buying products they know. The impact of R2R comes down to better customer awareness and willingness to buy into the scheme.
2) Business impact: Products which are easily repairable will be more attractive to customers but with planned obsolescence being a key part of the technology industry, businesses will have to adapt to this loss in new sales. Businesses may look to drop prices of goods to ensure that newer ones are bought which could negatively impact this policy. This behaviour is not a circular business model and is something we recommend avoiding. However, this may allow consumers access to higher range commodities which are more energy efficient and could reduce our environmental impact as a whole.
Why is reducing E-waste a priority for the environment?
The directive of R2R is important for reducing waste of valuable resources which we have extracted from the Earth. Production of E-waste is estimated at just over 50 million tonnes per year of which 80% is placed into landfill. There are many materials contained within the E-waste that when placed into landfill could cause the soil to become contaminated. The World Health Organization states these materials cause adverse impacts to our health and most affect children. The understanding of value retention and the impact that it could have on a business is a key element of expertise you will find with the Oakdene Hollins team.
Conclusion
As R2R is implemented across the European countries in the next few years, we can expect to see a decrease in the impact of planned obsolescence. Corporations will be required to adhere to a stricter and more circular approach of design which allows us to reduce our waste. This is a brilliant step for seeing real change in our drive for a circular economy by encouraging the design of products that can be repaired and reused rather than discarded. If you have any further questions or concerns about R2R and what you may need to plan for, please get in touch. Oakdene Hollins are ready for any assistance you may require.